Slide #13 - What will trigger the Kondratieff winter deep-freeze?
Despite all manner of deceit, such as that of gold market manipulation, the bubbles can only be inflated so much before the system collapses. In fact, as pointed out in slide 6, ultimately the much more rapid growth in debt relative to income will by itself ultimately lead to a deflationary collapse. But there are some other forces that could hasten the move toward the deflationary freeze-up of the Kondratieff winter. Some of the more obvious forces would be: (a) rising interest rates when debt is so great; (b) rising energy prices which would not only reduce cash flow available to pay debt but would reduce economic demand; and (c) rising taxes by government to remain solvent. Aging expenditures for medical care, continued loss of high-paying jobs during this phase of globalization, natural disasters such as water shortages in the southwest, and a terrorist attack are some additional factors that could cause us to plunge into the deflationary freeze-up phase of the current Kondratieff cycle.